The Dangote Petroleum Refinery initial public offering (IPO) could help deepen investment flows between Nigeria and the Gulf as the country’s capital market builds capacity to accommodate larger transactions, according to the Chairman of Nigerian Exchange Group (NGX Group), Umaru Kwairanga.
Kwairanga said the transaction demonstrates that Nigeria’s public market can support companies of significant scale while creating opportunities for both local and international investors.
“The Dangote Petroleum Refinery IPO sends an important signal about the capacity and ambition of Nigeria’s capital market,” Kwairanga said during an interview at Money20/20 Middle East in Riyadh, Saudi Arabia. “It demonstrates that businesses of substantial scale can turn to our public market to raise long-term capital, broaden ownership and give both institutional and retail investors an opportunity to participate in their growth.”
He said the transaction could also encourage other large Nigerian and African businesses to consider the capital market as a source of long-term financing.
Kwairanga noted that the Gulf presents a significant opportunity for Nigeria, given the large pools of institutional capital managed by sovereign wealth funds, asset managers and family offices across the region. Financial services, telecommunications, energy, infrastructure and industrial development are among the sectors offering investment opportunities, according to the NGX Group chairman.
Nigeria has introduced several market reforms in recent months, including the transition to T+1 settlement and the extension of trading hours. The country is also set to return to FTSE Russell’s Frontier Market universe from September 21.
Kwairanga further stated that NGX Group would continue to deepen relationships with Gulf institutional investors and improve the international visibility of Nigerian companies, while ensuring that the growth of the market translates into wider participation by Nigerians.
Public offers are increasingly being distributed through stockbrokers, banks and approved digital channels, supported by NGX Invest infrastructure, making it easier for investors to participate.
“Technology can widen participation and make investing more accessible, but access must grow alongside investor protection and education. Ultimately, trust is what sustains a capital market,” he said.